CES: Google’s Schmidt talks Android ecosystem at Next Big Thing

This afternoon, CNET presented a CES session called “Next Big Thing,” focused on how technology ecosystems are coming to dictate the success or failure of products like phones, computers and TVs.

The point: Competitive gadget specs are critical to compete, but they’re just the price of admission. Even the fastest speeds, highest resolutions and most powerful processors don’t much matter if the products don’t plug into the world of apps, services and content that consumers have come to expect.

Apple kicked off the modern version of this high tech war, with the App Store for its assorted devices. But Amazon, Google and Microsoft have each diligently fostered ecosystems, helping to drive more products, uses and customers in a virtuous cycle.

Google Executive Chairman Eric Schmidt sat down with CNET’s Molly Wood to discuss the Mountain View search company’s vision for its ecosystems, principally the popular Android operating system for smart phones and tablets (and increasingly other gadgets).

He said when he looks at his handset, he doesn’t see a phone, but a network of supercomputers, content and smart algorithms all immediately accessible over the device.

“Computing devices that are not on a network are lonely,” he said.

Schmidt said that the many electronic products within our homes will increasingly be able to connect and communicate. That will allow us to control lighting, adjust our refrigerators or send texts over whichever screen suits us at the moment, be it a phone, tablet, TV or more. It will also allow the devices to automatically “adjust to accommodate” us.

He complimented Apple’s success in building an ecosystem, but said: “Microsoft is trapped in an architectural transition problem they may not get through.”

It seemed a clear reference to the software giant’s late moves into and limited success within the mobile space.

Schmidt was, let’s say, more generous in his evaluation of Google’s own ecosystem results.
He dismissed the common critique that Android is fragmenting as various manufactures use different versions of the open source software for different devices and tweak it to suit their needs. Instead, he said it was an example of “differentiation” of the interface, but insisted that the underlying engineering and experience remains the same.

He also argued that “Google TV is doing very well,” but only cited new or forthcoming manufacturing partners as evidence. Consumers buying the thing in real numbers would arguably be a better metric of success.

Schmidt said “we have a full offering now,” when it comes to content. He pointed out that Google’s music offering has brought three of the four major record labels into the fold, and that there are more than 300,000 apps for Android. Many observers, however, will still argue that the company pales in comparison to the content available through Apple devices.

Schmidt also highlighted the growth of Android, which is now the dominant smart phone operating system, noting there are an average of 700,000 activations per day.